Clothing retailer Roots prices shares in IPO at between $14 and $16 | iNFOnews | Thompson-Okanagan's News Source

Current Conditions

Mainly Sunny

Clothing retailer Roots prices shares in IPO at between $14 and $16

October 02, 2017 - 11:43 AM

TORONTO - Clothing retailer Roots Corp. says it is looking to price its initial public offering at between $14 and $16 per share.

Roots says the total size of the offering being sold to the public is expected to $200 million or $230 million, if an over-allotment option is fully exercised.

The pricing of the offering follows an announcement by Roots last month that it wanted to launch an initial public offering. It plans to trade under the symbol ROOT on the Toronto Stock Exchange.

The shares are being sold by private investment firm Searchlight Capital Partners, which acquired a majority stake in the company in 2015, as well as founders Michael Budman and Don Green. Roots is not expected to receive any proceeds from the offering.

Searchlight will retain a roughly 54 per cent stake in Roots, while Budman and Green will keep about a 13.6 per cent stake after the IPO.

If the over-allotment option is exercised in full, Searchlight's stake is expected to slip to about 50.2 per cent, while the founders will hold 12.6 per cent.

Roots has more than 100 stores in Canada as well as four in the United States, partner-operated locations in Taiwan and China and an online retail business.

In its filing with securities regulators, Roots said it wants to continue its grow in Canada as well as the United States and in international markets.

News from © The Canadian Press, 2017
The Canadian Press

  • Popular kamloops News
View Site in: Desktop | Mobile